West Bengal's Seventh Pay Commission Terms Include Pay Parity with Centre, Higher Annual Increments

PTI, August 8, 2026, Kolkata: Pay parity with employees under Central Pay Commission, restoration of commuted pension after 11 years and raising annual increments from three to at least five per cent are among the terms of reference of West Bengal's seventh pay commission.

The panel constituted recently looks to propose a comprehensive revision of pay, allowances and service conditions of state government employees and changes in career progression, retirement and healthcare benefits.

It seeks to examine the existing pay structure, allowances, pension, gratuity, and other retirement benefits, and to rationalise them in light of prevailing economic conditions and inflation. A senior state government official said the proposals cover "all major aspects of the service conditions of government employees" and aim to address anomalies in the existing system. "It is intended to bring greater rationalisation to the pay and service structure while taking into account present economic realities and the requirements of government employees," the officer said.

Among the terms of reference of the Seventh Pay Commission is to bring parity in the pay levels of state government employees and those under the Central Pay Commission, to achieve all-India equivalence and reduce litigation arising from differences in pay structures. 

The proposed terms of reference also seek to introduce a mechanism for dearness allowance based on the Consumer Price Index for Industrial Workers and recommend a standing order for its disbursement. House rent and transport allowances are proposed to be reviewed in line with the Central Pay Commission, while children's education allowance, hostel subsidy and other existing allowances are also to be examined for rationalisation and revision.

The promotion and appraisal policy is proposed to be reviewed to improve efficiency, accountability and responsibility in government offices. 

The Career Advancement Scheme could also change, with the pay panel seeking assured progression after five, eight, 12, 18 and 24 years of service, against the existing three-tier system of eight, 15 and 24 years. 

A review of retirement benefits, including restoration of commuted pension after 11 years, changes in leave encashment provisions and grant of one notional increment to employees retiring on June 30 are also on the cards. 

"The emphasis is also on ensuring that career progression and retirement-related benefits keep pace with changing service conditions," the official said. 

The West Bengal Health Scheme for state government employees is proposed to be revised, with the framework seeking updated rates, full cashless treatment for employees and pensioners, and enhancement of doctors' fees.

It also proposes changes in the definition of family beneficiaries under the scheme. On the pay front, the proposed framework recommends increasing annual increment from the existing three per cent to at least five per cent. It also calls for determining minimum pay by considering a five-member family unit instead of the 3.5-member unit used by the previous pay commission.

The commission has been asked to examine giving effect to the revised pay structure from January 1, 2026, rather than notionally, and consider the fitment factor after a 100 per cent merger of dearness allowance with basic pay in the light of the 8th Central Pay Commission.